Deputy governor of the Reserve Bank Anand Sinha today said that the burgeoning non-performing assets in the banking system was not a systemic issue but only a reflection of the economic stress being faced.
"Whenever there is stress on the economy, both global and Indian, that is bound to reflect on the banking system. But I will not call it a systemic issue," Sinha told reporters on the sidelines of a conference here.
Sinha's comments come a day after Finance Minister Pranab Mukherjee said that the NPAs have grown at "an uncomfortable and unacceptable rate" in the last two years and asked banks to tread cautiously because of the risks involved.
The NPAs of public sector banks grew by a percentage point to about 3.3 per cent of the assets in 2011-12 as against 2.3 per cent a year ago.
Several companies are opting for corporate debt restructuring (CDR) to tide over the difficult financial situation in the backdrop of the slowdown.
Aviation, state electricity boards, textile, telecom infrastructure and steel are among the sectors which are reporting stress at present.
Acting on the issue, the RBI has also held a special meeting with the top brass of banks last month to take stock of the situation and suggest ways of dealing with the issue.
About depreciation of rupee and whether RBI is indeed considering opening up of a special window for oil importers, Sinha refused to give a direct answer.
"All options are open. Whatever is there on the table, how can we close down an option. But I cannot comment on what has been done or what will be done," he said.
When asked about the timeline for issuing new bank licenses, Sinha said the central bank was waiting for the necessary amendments to the banking regulations being passed by the government.
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